2. Supplement to the decrease in local allocation tax due to income tax cuts in FY 98...\136 billion
The full amount will be supplemented by loans from the special account for local allocation tax
NB1) The interest on the loan will be transferred from the general account to the special account in the year the interest is generated.
NB2) Of the \313 billion decrease in local allocation tax in FY 97 due to special income tax cuts, \222 billion (the total less \91 billion adjustment for FY 96 local allocation tax) will be supplemented by transferring the full amount from the general account to the special account for local allocation tax.
3. Supplement to the decrease in local tax due to special local residents tax cuts in FY
・The full amount will be supplemented by tax-cut covering bonds
(1) The Local Financial Law will be revised, and the loan issued as a special loan under Article 5 of the law.
(2) The amount of the tax-cut covering bonds will be included in the basic financial income for FY '98 (80% for prefectures, 75% for municipalities)
(3) Repayments of principal and interest of the tax-cut covering bonds will be 100% included in the basic financial demand for local allocation tax from FY 99.
